What is a 5/1 ARM Loan

A 5/1 ARM loan:

  1.  charges a 5% interest rate for the 1st year and fluctuates every year after that
  2.  charges a 1% interest rate for 5 years and then fluctuates with the market every year after that
  3.  has a fixed rate for the first five years and has a rate that changes once each year for the remaining life of the loan
  4. requires a 20% down payment

C is the answer.